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1. Company Snapshot

1.a. Company Description

Mota-Engil, SGPS, S.A. provides construction services for public and private customers in Europe, Africa, and Latin America.It constructs infrastructure projects, including airports, railways, hydraulic, ports, roads, and urban facilities; and agricultural and industrial, public building, office and commerce, housing, and silo and chimney projects, as well as provides buildings rehabilitation services.The company also collects, treats, recovers, and disposes urban solid, non-hazardous, and industrial waste; explores mineral resources; extracts gravel, sand, and crushed stone; generates and distributes electric energy; and produces hydroelectric energy.


In addition, it designs and constructs social housing; markets, manages, and exploits technological and industrial business parks; develops real estate; manages financial holdings; and constructs, manages, and maintains golf courses.Further, the company provides urban cleaning, terminal exploration, inspection, business administration, restoration, commercial, sea transport, sustainable mobility, shipping, and civil engineering and architecture services; and involved in the tourism, tourist entertainment, road signs, hotel, restaurant, oil recycling, and landscape gardening activities.Additionally, it designs, constructs, manages, and exploits parking lots; rents construction equipment; manufactures and trades clay materials; manufactures prestressed and iron-derived products; trades fuels and related products; and explores landfills.


The company engages in the railway transportation of goods, stainless steel works, maintenance and operation of facilities, insurance mediation, and finance and consulting activities.It also designs, installs, develops, and maintains ITS; and operates industrial slaughterhouse.The company was founded in 1946 and is headquartered in Porto, Portugal.


Mota-Engil, SGPS, S.A. operates as a former subsidiary of Mota Gestao E Participacoes SGPS, SA.

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1.b. Last Insights on EGL

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1.c. Company Highlights

2. Transcript Summary

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.11%)

6. Segments

Latin America - Engineering & Construction

Expected Growth: 2.5%

Mota-Engil's 2.5% growth in Latin America's Engineering & Construction segment is driven by increasing infrastructure investments, urbanization, and government-backed projects. Strong demand for transportation infrastructure, such as roads and bridges, and energy projects, including renewable energy, also contribute to growth. Additionally, the company's diversified portfolio and strategic partnerships in the region support its expansion.

Africa - Engineering & Construction

Expected Growth: 1.8%

Mota-Engil's 1.8% growth in Africa's Engineering & Construction segment is driven by increasing infrastructure development, government investments in transportation and energy projects, and a growing demand for residential and commercial buildings, fueled by urbanization and economic growth in countries such as Nigeria, Egypt, and South Africa.

Europe - Engineering & Construction

Expected Growth: 1.2%

Mota-Engil's 1.2% growth in Europe's Engineering & Construction segment is driven by increasing infrastructure investments, urbanization, and government-backed projects. Strong demand for renewable energy and transportation infrastructure also contributes to growth. The company's diversified portfolio, strategic partnerships, and operational efficiency further support its expansion in the region.

Environment

Expected Growth: 2.2%

Mota-Engil's 2.2% growth in the Environment segment is driven by increasing demand for sustainable infrastructure, government investments in eco-friendly projects, and the company's strategic expansion into renewable energy and waste management services, leveraging its expertise in water and waste treatment.

Capital

Expected Growth: 1.5%

Mota-Engil's 1.5% capital growth is driven by increasing infrastructure investments in Europe and Latin America, coupled with a strong order book and successful project executions. Additionally, the company's diversification into renewable energy and concessions businesses contributes to its growth momentum.

Mext

Expected Growth: 2.8%

Mext's 2.8% growth is driven by increasing infrastructure investments in Latin America, particularly in Mexico, where the company has a strong presence. Additionally, the growing demand for transportation and energy projects, as well as the company's diversification into new markets, contribute to its steady growth.

Others, Eliminations and Intra-group

Expected Growth: 1.0%

Others segment growth driven by increased construction activities in Africa and Latin America. Eliminations growth attributed to higher inter-segment sales. Intra-group growth fueled by rising demand for infrastructure development and renewable energy projects, contributing to 1.0% growth.

7. Detailed Products

Construction and Civil Engineering

Mota-Engil provides construction and civil engineering services for infrastructure projects, including roads, bridges, railways, and buildings.

Transport Concessions

Mota-Engil operates and manages transportation infrastructure, including highways, bridges, and tunnels, under concession agreements.

Environment and Water

Mota-Engil provides services for water and wastewater treatment, waste management, and environmental remediation.

Energy and Industrial

Mota-Engil provides engineering, procurement, and construction (EPC) services for energy and industrial projects, including power plants, oil and gas facilities, and industrial processes.

Railway Systems

Mota-Engil designs, builds, and maintains railway systems, including tracks, signaling, and electrification.

Airport and Logistics

Mota-Engil provides services for airport infrastructure development, including design, construction, and operation of airports and logistics facilities.

8. Mota-Engil, SGPS, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Mota-Engil, SGPS, S.A. is medium due to the presence of alternative construction and infrastructure development companies.

Bargaining Power Of Customers

The bargaining power of customers for Mota-Engil, SGPS, S.A. is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Mota-Engil, SGPS, S.A. is medium due to the company's dependence on a few large suppliers for raw materials and equipment.

Threat Of New Entrants

The threat of new entrants for Mota-Engil, SGPS, S.A. is low due to the high barriers to entry in the construction and infrastructure development industry.

Intensity Of Rivalry

The intensity of rivalry for Mota-Engil, SGPS, S.A. is high due to the presence of several established competitors in the construction and infrastructure development industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 90.66%
Debt Cost 11.16%
Equity Weight 9.34%
Equity Cost 11.16%
WACC 11.16%
Leverage 970.41%

11. Quality Control: Mota-Engil, SGPS, S.A. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Galliford Try

A-Score: 6.8/10

Value: 6.4

Growth: 6.8

Quality: 5.6

Yield: 7.5

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Burkhalter Holding

A-Score: 6.6/10

Value: 2.6

Growth: 5.1

Quality: 6.7

Yield: 6.9

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Per Aarsleff Holding

A-Score: 6.5/10

Value: 5.8

Growth: 8.2

Quality: 4.8

Yield: 3.8

Momentum: 10.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
NCC

A-Score: 6.3/10

Value: 6.5

Growth: 5.4

Quality: 4.6

Yield: 7.5

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
Mota-Engil

A-Score: 5.7/10

Value: 6.1

Growth: 7.3

Quality: 4.4

Yield: 5.6

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

Stock-Card
Keller

A-Score: 5.5/10

Value: 7.6

Growth: 7.0

Quality: 5.1

Yield: 4.4

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.05$

Current Price

0.05$

Potential

-0.00%

Expected Cash-Flows